Tinubu seeks $516m loan to fund major national highway project

Nigeria’s President Bola Tinubu has requested National Assembly approval for a $516 million foreign loan to fund early construction of a 1,000-kilometre national highway linking key regions from Sokoto to Lagos. The loan, arranged through Deutsche Bank, is part of the government’s approved borrowing plan and includes a nine-year repayment period with a three-year grace period. Officials say the project will improve transport, reduce costs, boost trade, and strengthen national integration.

Nigeria’s President Bola Tinubu has formally requested approval from the National Assembly for a $516 million foreign loan aimed at financing the early construction phases of a major national highway project designed to strengthen transport links across key regions of the country. The request was presented in a letter read aloud by the Senate President during a plenary session on Thursday, drawing legislative attention to one of the government’s flagship infrastructure initiatives.
In the letter, the president explained that the proposed financing would come through a syndicated loan arrangement facilitated by Deutsche Bank. He noted that the borrowing aligns with Nigeria’s approved medium-term debt strategy, which has already been reviewed and authorised by lawmakers as part of broader fiscal planning to support infrastructure development and economic growth.
The loan, according to the details provided, is structured with a repayment tenor of nine years and includes a grace period of up to three years. This means that the country would not begin repaying the principal immediately, allowing time for the project to progress and potentially begin generating economic benefits before debt servicing commences.
The funding is intended for the construction of the first sections of a major highway estimated to span approximately 1,000 kilometres. The proposed route is strategically designed to enhance national connectivity by linking Sokoto State in Nigeria’s northwest through Niger State and Kwara State in the central region, ultimately extending to Badagry in Lagos State, a major coastal town and gateway to the country’s commercial capital.
Government officials have described the highway as a transformative infrastructure project expected to significantly improve transportation efficiency across the country. By reducing travel time and lowering haulage costs, the road is projected to facilitate smoother movement of goods and services between agricultural regions in the north and industrial and commercial centres in the south.
The administration also argues that the project will contribute to broader economic objectives, including boosting internal trade, strengthening food supply chains, and improving national integration by physically connecting distant regions more effectively. In addition, it is expected to stimulate economic activity along its corridor, potentially encouraging new investments in logistics, agriculture, and small-scale commerce.
This latest financing request follows a similar large-scale borrowing initiative approved in previous years. In 2025, Nigeria secured a $747 million syndicated loan, also arranged by Deutsche Bank, which was used to fund the initial phase of a separate 700-kilometre coastal highway project. That project was part of the government’s wider infrastructure drive aimed at modernising road networks and improving regional connectivity across the country.
Taken together, these projects reflect a continued emphasis by the administration on expanding Nigeria’s transport infrastructure through external financing, with the aim of addressing long-standing challenges in road quality, regional access, and economic integration.